More corporate governance concerns? The latest report on Moneycontrol about the real money gaming platform GameKraft stated that the company filed an FIR against its former Group Chief Financial Officer, Ramesh Prabhu, for fund mismanagement.
In the FIR, the company stated that the former CFO diverted the funds through private accounts, leading to a loss of about Rs 250 crore to the company, fuelling corporate mismanagement worries.
Prabhu sends an email on fund diversion
The report on Moneycontrol indicates that a surprising fact that emerged from the FIR is that Prabhu had ‘voluntarily’ confessed to the diversion of the company’s money in an email dated March 5.
In the email, Prabhu confessed that for a period of four years, FY20-FY25, he used the company’s money to invest in the stock market through Future and Options (F&O) trading.
As the Chief Financial Officer of the company, Prabhu held the top spot responsible for the company’s financial security. He was the first line of defence when it came to the financial security of the company. A misuse of the company’s funds by him raises questions on corporate governance standards in India, as in other cases like IndusInd Bank and ICICI Bank.
Who is Ramesh Prabhu
Prabhu was appointed the CFO of GamesKraft Technologies, a Bengaluru-based real money gaming startup, in 2018. Before joining GamesKraft Technologies, he founded a startup named Three Wheels United, which worked in financing loans for the autorickshaw drivers.
Before this, Prabhu also founded another startup called SocioEnviro Solutions in 2009. He was also associated with WorldsSpace as a Finance Manager.
The 47-year-old former CFO is a Chartered Accountant and completed his MBA from the Indian School of Business.
What’s next for Prabhu
While GamesKraft Technologies officially lodged an FIR against Prabgu in Bengaluru’s Marathahalli police station on September 9, as per an ET report, he has been unreachable since March 1 and has not come to work since his confession email to the company management.